What to know about the American mineral agreement -ucrine, from the type of rare earths to deposits

He Joint Economic Investment Agreement Announced on Wednesday that provides access to the United States to Ukrainian minerals can provide Ukraine more support for their defense against Russia. But it also arrives at a key moment for the US economy amid its growth Commercial War with Chinaan important producer of rare earth and other critical minerals.

The new agreement was described by Yulia Svydenko, Minister of Economic Development of Ukraine, as an equal association between the United States and Ukraine that includes the development of mineral, oil and gas projects. The United States will provide direct financial assistance or new military assistance to Ukraine, which will contribute half of the royalties of future oil, gas and mineral licenses.

The pact occurs when US access to rare minerals, which are key to manufacturing high -tech products such as computer chips and military equipment, has decreased after China last month announced export restrictions In some of these minerals in retaliation for US tariffs. Although Mr. Trump has suggested Buy Greenlandwhich has rare earth and critical minerals, as well as oil and natural gas, Ukraine can provide a more easily available source for these strategically vital natural resources, experts say.

“You listen a lot about Greenland, but that is a very, very long play with a lot of infrastructure construction and a lot of ice fusion, to be fair,” News Heidi Creb-Rediker, an expert in the Foreign Relations Council, told News.

On the contrary, Ukraine has the workforce and metallurgical knowledge to extract and develop these rare earth minerals, he added. This is what you should know about the United States agreement with Ukraine.

What covers the minerals of the United States-Ukraine?

The agreement covers minerals, including rare earth elements, but also other valuable resources, including oil and natural gas, according to the text published by the Ukraine government.

It does not include resources that currently generate income for the Ukrainian State. In other words, any gain under the agreement depends on the success of the new US investments.

Ukrainian officials have also indicated that the agreement does not refer to any debt obligation for kyiv, which means that it is unlikely that profits are referenced to pay the United States for their previous financial support for the country in their war with Russia, according to Svydenko.

The text of the agreement lists 55 minerals subject to the US-U Agreement.-Ukraine, but says that it can be added to the PACT. Trump has repeatedly expressed interest in the elements of rare earths of Ukraine, and some of them are included in the list, as well as other critical minerals, including titanium, lithium and uranium.

What are the minerals of the rare earth?

Rare earth minerals are a set of 17 metal elements, such as Scandio and Ititrio, according to the United States Geological Service. The scandio is used in aluminum alloys for aerospace parts, while the itit is used in LED and solid oxide fuel cells, according to Stanford Advanced Materials, a Scandio provider.

China is the world’s largest producer in rare earths, according to geological service data.

In addition to rare earth minerals, China also dominates the production of critical minerals such as lithium and graphite, which are essential to produce batteries used in electric vehicles and other devices.

How great are Ukraine mineral reserves?

Ukraine has about 5% of total global mineral reserves, which include critical minerals and rare earth elements, according to Capital Economics, which cited the Ukrainian geological service.

“Monetary estimates of Ukraine reserves vary greatly. However, there is much skepticism about the precision of national Ukraine estimates since, according to reports, they depend on the obsolete evaluations of the Soviet era,” said Capital Economics in a research note on May 1.

Currently, Critical Minerals of Ukraine generate less than $ 200 million in annual export revenues, analysts of the investment advice firm said. “[T]The reality is that it is unlikely that most Ukraine mineral reserves are economically viable, especially in the short term, “they added.

Ukraine has large cobalt and nickel deposits, which are important for high-performance batteries, Creb-Rediker said.

What is happening with China’s minerals?

China placed new restrictions on seven heavy rare land minerals on April 4, including the Scandio and the ititrium, in retaliation against US tariffs.

“Beijing has an response history to measures such as tariffs and technological controls of Washington by imposing curbs for exports of raw materials to the United States,” wrote capital economy analysts in a report on May 1.

They added: “According to President Trump, it seems that developing alternative supply sources will continue to be a key priority, which could limit any interruption of geopolitical supply chains in the medium term and reduce the western dependence of China and its allies.”

China has an “almost complete strangulator in another important critical material: graphite,” added CREB-Rediker. “Ukraine is the fifth largest graphite producer and also Galio, which is restricted by China at this time.”

What is the state of the Ukraine mineral industry?

The rare earth elements of Ukraine are largely exploited due to the state policies that regulate the industry, the lack of good information about the deposits and the war with Russia. The industry’s potential is not clear since mineral reserves are scattered in Ukraine, and existing studies are largely considered inappropriate, according to analysts.

In general, however, it is considered that the natural resources of Ukraine have significant commercial potential. It is believed that the country’s titanium reserves, a key component for aerospace, medical and automotive industries, are among the largest in Europe. Ukraine also has some of the largest lithium reserves in Europe, which is required to produce batteries, ceramics and glass.

In 2021, the Ukrainian mineral industry represented 6.1% of the country’s gross domestic product and 30% of exports.

It is estimated that 40% of Ukraine metallic mineral resources are inaccessible due to Russian occupation, according to We Built Ukraine data, a group of kyiv -based experts. Ukraine has argued that Trump is of interest to develop the rest before Russian advances capture more.

The Association press contributed to this report.

In:
• Rare earth minerals
• Ukraine